SBV backs to injection as liquidity demand rises

This week, the SBV returned to net liquidity injection as liquidity demand in the banking system picked up, while USDVND remained broadly stable. The interbank curve flattened as short-term rates climbed faster than longer tenors, accompanied by a rise in trading volume—signaling stronger funding demand among banks and higher funding costs. With repo outstanding having declined notably following previous weeks of net withdrawals, limited exchange rate pressure, and increasing year-end credit disbursement needs, we expect the SBV to maintain a net injection stance on the OMO market in the coming weeks to ease funding costs and support banking system stability.